Homework 7

A  The economy is experiencing a rapid rise in the prices of all goods and services

B  The economy is going great and should carry on without changing any policies at all

C  The Bushovska Administration should do away with deposit insurance as soon as possible

D  Monetary policy cannot be used to help fix the economy as the interest rate is already so low

E  None of the above

A  It was worsened because of political infighting within the Federal Reserve

B  It was a much longer period of economic downturn than previous recessions and depressions

C  It was worsened because President Herbert Hoover’s devotion to free markets meant he did nothing to combat the Depression

D  It helped lead to Deposit Insurance which put a stop to bank panics

E  It was in part caused by the loss of confidence in the country’s banking system

A  TRUE

B  FALSE

A  The real wages fell that year

B  The wages of soldiers at the time were much higher than the market wage

C  The unemployment rate was at levels near the Great Depression

D  The success of the strike in the steel industry the year before

E  The nominal wage had not increased

A  New taxes

B  Economic gains in terms of increased exports to Europe

C  Increased economic opportunities for African Americans

D  High inflation

E  The switch from the US being a command economy before World War 1 to a market economy during World War 1

A  To stop investment banking

B  To follow the demands of Coxey’s Army

C  To try to prevent bank panics

D  To follow what was suggested in the novel “The Wizard of Oz”

E  To copy Canada’s banking system

A  It can result in increased unemployment

B  It would lead to the government overprinting their country’s currency

C  It would lead to stricter versions of double liability

D  It would cause a decline in the purchasing power of a given loan

E  It would benefit borrowers

A  The Act was in part supported and pushed by suppliers in the economy’s agricultural sector

B  The Act resulted in a crackdown on many monopolies as it was strictly interpreted and enforced without exception by the Courts

C  The Act said it would punish those who monopolized any part of the trade or commerce among several states

D  The Act was partly due to the rise of large corporations like Standard Oil

E  The Act had to be interpreted by the Courts

A  It is not in any way related to continuous flow production

B  It persuaded the courts to do away with all monopolies at the end of the 19th century

C  It can explain at least partly why US firms decreased in size

D  It is just another word for trusts

E  It causes the cost per unit of goods to decrease

A  FALSE

B  TRUE